The massive cryptocurrency exchange, Bitfinex has just recently announced that it expects to be prosecuted by an unknown party in a ‘meritless and mercenary lawsuit’.
Over the course of 2019, the Hong Kong-based exchange has been involved in a string of controversies and apparently was made aware of a damning report and is looking to quell any negative press before its published.
“Bitfinex is aware of an unpublished and non-peer reviewed paper falsely positing that Tether issuances are responsible for manipulating the cryptocurrency market. Bitfinex vigorously disputes the findings and conclusions claimed by that source, which rely on flawed assumptions, incomplete and cherry-picked data, and faulty methodology.”
The exchange hasn’t yet discovered the source of the claim however several studies and research papers have surfaced which suggests that newly-minted Tethers tend to have an impact on the price of bitcoin and in a good way too.
This lawsuit has a lot of weight behind it and has been ongoing for months now. The exchange’s legal fiasco’s aren’t ending anytime soon though as plaintiffs are looking for a quick ‘money grab’.
“We fully expect mercenary lawyers to use this deeply flawed paper to solicit plaintiffs for an opportunistic lawsuit… In advance of any filing, we want to make clear our position that any claims based on these insinuations are meritless, reckless and a shameless attempt at a money grab.”
However, Tether, one of the biggest stablecoins in the space has been questioned recently as many are curious on it being tied to the US Dollar, considering how much the USD has dropped over the past few years.
Tether Limited, the firm behind the stablecoin is a separate entity from the Bitfinex exchange however speculation runs wild that the two are working together.
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!